Welsh businesses will be preparing for a weekend of celebrations ahead of the royal wedding, but firms need to plan now to capitalise on similar opportunities during the summer months, says Allan Griffiths, regional director for Lloyds Bank Commercial Banking.
Royal wedding fever is sweeping the nation and with the FA Cup final also taking place this Saturday, many businesses will be preparing themselves for a busy weekend ahead.
The Centre for Retail Research has predicted that the royal wedding could bring £120 million to the British economy as people purchase memorabilia, hold street parties in the sun or take advantage of the extended licensing hours to raise a glass to the happy couple.
There’s also potential for tourism-related businesses to benefit from the wedding during the year ahead, with the obvious increase in interest from the US potentially leading to an influx of visitors.
Although many firms across Wales will already have plans in place for this weekend’s celebrations, it’s an important reminder for businesses to make the most of similar upcoming opportunities.
For example, the Wales Airshow, which will take place at Swansea Bay in July, is set to attract more than 250,000 people to the city and generate £8.7 million for the local economy.
To capitalise on this upturn in demand, businesses need to make sure that they are fully prepared ahead of time, ensuring that they have a good range and supply of products, an effective marketing strategy and sufficient cash flow to take advantage of the opportunity without overtrading.
Allan Griffiths says good cashflow management is key to taking advantage of these opportunities:
“To invest in their business quickly, firms also need to ensure that they have sufficient cash available that is not tied up in working capital. This is essentially the amount of money tied up in the day-to-day costs of doing business.
“At Lloyds Bank, we’ve developed a specialist working capital management tool that helps firms to evaluate their cash flow and collection cycles, and identify where pressure points lie within their company. With this increased understanding, businesses can then assess if they can do anything to improve cash flow, such as using asset or invoice finance.
“These products can be extremely beneficial ways for firms looking to capitalise quickly on a specific event. A cafe in the centre of Swansea, for example, may use asset-based lending to release money tied up in stock so that it can be immediately reinvested in additional staffing, as 90 per cent of the value of the stock’s invoices can be released in 24 hours.
“National events can offer a significant boost to businesses and local economies, and firms across Wales will be hoping that people celebrate the royal wedding in style this weekend. But to ensure that they fully capitalise on the spike in demand created by future events, planning ahead of time will be key.”
